SWEDEN/ UK: Nasdaq and Borse Dubai join forces on a deal to buy Nordic markets operator OMX
- 00:00:28
- ITN Source
SWEDEN/ UK: Nasdaq and Borse Dubai join forces on a deal to buy Nordic markets operator OMX
Nasdaq and Dubai's stock exchange strike a deal over Nordic markets operator OMX and the London Stock Exchange. Nasdaq and Borse Dubai joined forces on Thursday (September 20) with a deal to buy Nordic markets operator OMX and create "a global financial marketplace" which will see Borse Dubai taking key stakes in London Stock Exchange and Nasdaq. The deal shakes up ownership of some of the world's top share markets and takes the Nasdaq brand into the Middle East and Asia. As part of the agreement, U.S.-based Nasdaq and state-owned Borse Dubai ended their tussle to buy Nordic markets operator OMX. Nasdaq gets to buy OMX, while Borse Dubai takes on Nasdaq's key stake in the London Stock Exchange and buys 20 percent of Nasdaq itself. "It's great for Nasdaq because we then become the centre of financial services. We'll have a great pool of liquidity in the north American market, we will be a very strong player in Europe and we'll be the leader in the emerging market place.That is unique in the exchange place today," Nasdaq's President and Chief Executive said at a joint news conference. Under the deal, Borse Dubai will end up with a 20 per cent stake in Nasdaq and Nasdaq will take a strategic stake in Dubai International Financial Exchange (DIFX), which it said will be rebranded with the Nasdaq name and licensed to use Nasdaq and OMX market technology. Nasdaq will ultimately take over OMX, and Borse Dubai has bought from Nasdaq a 28 percent stake in the London Stock Exchange for 14.14 pounds a share, leaving Nasdaq with 3.5 percent of the London market operator. "We have a growth market, the exchange business right now is a great growth market. We see continuous growth of volumes, new products, new services but we also see a price pressure that is quite severe. In order to cope with the price pressure I think we need to constantly increase our capacity, get more products and services in and as a part of that we need to consolidate. We need to get our cost structure down and in order for us to do that, consolidation is a very natural way," said Magnus Bicker, CEO of OMX. The moves, which highlight the increasing influence of Gulf Arab states in global takeover deals, brought a swift response from Dubai's regional financial rival Qatar. Qatar said it had bought 20 percent stake of the London Stock Exchange through the Qatar Investment Authority (QIA) and urged OMX shareholders to take no action on the Dubai/Nasdaq offer. Sources familiar with the matter later said the QIA was buying OMX shares. Borse Dubai is a holding company for the Dubai government's stakes in Dubai Financial Market and the Dubai International Financial Exchange (DIFX). OMX, in addition to owning and running exchanges in Sweden, Denmark, Finland, Iceland and the Baltic states, provides technology to about 60 exchanges worldwide, including the Australian Securities Exchange, Nordic power market Nordpool and the Singapore Exchange.
ITN Source | September 21, 2007
